10 Reasons Why I Love Running A Business in Malaysia
Time flies when you are having fun…and from my personal experience I can say that it is very true.
While it was over 12 years ago, it feels like it was only yesterday that I came to Malaysia as a corporate professional. Fast forward today, and I am fortunate to be running SD Global, a highly successful healthcare technology company in Malaysia. It has been a delight to be in this country – both as a professional and as an entrepreneur. This country accepted me, helped me grow, and opened a lot of opportunities for me.
I have no hesitation in saying that it is one of the best countries to be in if you want to start and grow your business.
Malaysia is a robust economy. According to the World Bank’s Doing Business 2019 Report, Malaysia is at the 15thspot among 190 economies worldwide when it comes to ease of doing business. A lot of this is to do with the acceleration in various reforms, something that also attracted me to set up my business in this part of the world.
That said, here are the top reasons why I love about running my healthcare technology business in Malaysia.
Start a Business Quickly
Malaysia is known for being numero unoin the world for obtaining business credit. There are only a handful of procedures to start a venture here. And that is not all! The time taken to process the applications is just about a week.
This makes it effortless even for first-time business owners to start something without wasting their precious time. In addition to this, as a part of its Tech Entrepreneur Program, you can also get a 1-year pass for New Entrepreneur and a 5-year pass for an Established Entrepreneur. Foreign investors looking to quickly launch their business, this is the best place to make a head start!
MDEC MSC Malaysia Status
The Government of Malaysia offers MSC Malaysia Status to tech-led companies. For the companies with this status, the government offers a host of privileges, rights, and incentives to help them grow. These include access to high-speed broadband and fiber optics connectivity for the business, tax exemptions and grants on approved MSC activities, and also an option to hire local and foreign knowledge workers.
In 2017, Malaysian GDP was at RM1.35 trillion. This was an increase of 5.9% from 2016 and was the 7th consecutive year, where the country enjoyed a GDP growth of more than 4%. The reason behind this is the fantastic performances in various services areas, including financial and retail, along with the manufacturing sectors. Who wouldn’t want to do business in a country with a stable economy?
Malaysia is known for its exceptional healthcare system, which includes the government-run universal healthcare system as well as a co-existing private healthcare system. The biggest opportunity arrived for healthcare when the Malaysian Government focused on boosting the healthcare industry during the 10thFive Year Plan from 2010-2015, which included several key areas for taking healthcare to the next level in the country.
Technology Business Hotspot
Malaysia offers multiple complementary resources that makes it popular for expansion and investment by various technology businesses. Moreover, it conforms to the World Intellectual Property Organization (WIPO) standards and enforces Personal Data Protection Act (PDPA), something that could be crucial in the early days of starting specific categories of businesses.
Conventional Models Thrive Too
Apart from digital businesses, conventional business models especially, F&B and franchising are thriving in the country. This has more to do with the fact that the youth of the country want to spend their money on experiences rather than buying things. If your business is more inclined towards a conventional business model that provides experiences, you can go ahead and opt for Malaysia as the country of your choice for doing brisk business.
New Economic Model
The Malaysian government’s New Economic Model aims to take the country from a middle-income to a high-income economy. This is where the services sector will gain more attention. In fact, in the 11thMalaysia Plan, 2016-2020, this sector is being cited as the primary driver of economic growth. It is expected to grow at a rate of 6.8% per annum and contribute to 56.5% to the GDP in 2020. In 2012, the government liberalized an additional seven sectors, which included healthcare, professional services, telecommunication, education, and environmental services.
Digital Free Trade Zone
Malaysialaunched the Digital Free Trade Zone (DFTZ) in 2017. This is one of the most lucrative opportunities for anyone who wishes to explore opportunities in digital business. For instance, it is easier to launch an online business or explore a cross-border eCommerce business. In addition to this, there’s a large youth population and the rise in technology, which create ample opportunities for technology-based businesses.
Over the past few years, Malaysia’s infrastructure has grown by leaps and bounds. The country is well-connected via land and air to other countries, which offers multinationals and other businesses conduct trade effectively.
Language Barrier Next to None
English is the second language in Malaysia and is spoken by 70% of the population. This makes it easier for doing trade in the country for foreign nationals. Ergo, when you start a business, the communication with the local employees, customers and suppliers become a breeze. Additionally, business documents are also available in English. This is how I could save costly translations and time at the time of registering the company and, at the time of many business processes. The labor force is also multilingual, and they speak fluent English, which makes it easy to hire qualified, dedicated locals for the business.
All in all, Malaysia has lots to offer due to the government committing to develop the country into a thriving economy day by day. I am extremely excited to be here and be a part of the growth story!